Investing Tip

Disney responds to activist investor Dan Loeb’s suggestions


2 Mins read

Trending News 🌥️

In response to activist investor Dan Loeb’s suggestions, Walt Disney($NYSE:DIS) has announced that it will take some of his suggestions into consideration. This includes Loeb’s call for some fresh blood on the company’s board of directors. Earlier Monday, Loeb announced he’d taken a significant new stake in the company in recent weeks, and issued a multi-point plan of ideas, including buying Comcast out of its remaining stake in Hulu; giving more thought to spinning off ESPN; launching a cost-cutting program, including disposing of underperforming assets; suspending the dividend indefinitely in favor of debt repayment, buybacks and organic investments; and refreshing the board to address “gaps in talent and experience.” Disney has responded by saying that the company’s board of directors is experienced and has benefited from continuous refreshment. The board has an average tenure of four years. Disney also announced that it will take some of Loeb’s other suggestions into consideration, including buying Comcast out of its remaining stake in Hulu and giving more thought to spinning off ESPN. It is unclear how this will affect Walt Disney’s market and earnings in the long term.

Market Reaction

Disney responded to activist investor Dan Loeb’s suggestions on Monday, with the stock opening at $121.0 and closing at $124.3, up by 2.2% from prior closing price of 121.6. The news was mostly mixed, with some investors praising Disney for its handling of the situation and others feeling that the company could have done more to address Loeb’s concerns. Overall, it appears that investors are still confident in Disney’s ability to continue creating value for shareholders.

nyse:dis, market news, nyse, stock analysis
VI Analysis

The company’s fundamentals reflect its long term potential. The VI app makes it easy to see the company’s strengths and weaknesses. According to the VI Risk Rating, WALT DISNEY is a high risk investment in terms of financial and business aspects. The app highlights the areas of potential risk in the business and financial areas. nyse:dis, market news, nyse, stock analysis


nyse:dis, market news, nyse, stock analysis
The company’s stock price rose 2.2% the following day. Disney has long been a target of activist investors, and Loeb is no exception. In his letter, Loeb outlined several areas where he believes Disney could improve its business, including increasing its focus on its core businesses, reducing costs, and becoming more shareholder-friendly. Disney has responded to Loeb’s suggestions, saying that it is already taking steps to improve its business. The company has promised to increase its focus on its core businesses, reduce costs, and become more shareholder-friendly. While Disney’s stock price rose following the release of the letter, it remains to be seen if the company can truly deliver on Loeb’s demands.
Related posts
Earnings ReportEntertainmentProfitability

CORUS ENTERTAINMENT Reports Significant Decrease in Revenue and Income for FY2023 Q1


Earnings report CORUS ENTERTAINMENT ($TSX:CJR.B) is a leading media and content company that specializes in creating, broadcasting, distributing and selling entertainment content across all platforms. It owns leading television brands such as Global, HGTV Canada,…
Earnings ReportEntertainmentProfitability

IQIYI Reports 77.1% Increase in Revenue for Third Quarter of FY2022, Despite 1.6% Drop in Net Income


Earnings report IQIYI ($NASDAQ:IQ), a leading online entertainment platform, released its earnings report for the third quarter of FY2022, ending September 30 2022, on January 17 2023. The report revealed that the company’s total revenue…

IMAX Co. Shares Earn Moderate Buy Rating from Brokerages


Trending News ☀️ IMAX ($NYSE:IMAX) Corporation is a Canadian entertainment technology company that specializes in motion picture technologies and large-format theater systems. With its innovative technologies, IMAX has become one of the most recognizable brands…
Corporate ActionEntertainmentIntrinsic Value

MSG Entertainment Takes Steps to Spin Off Live Entertainment Business


Trending News ☀️ MSGE Intrinsic Value – Madison Square Garden ($NYSE:MSGE) Entertainment Corp. (MSG Entertainment) is a publicly traded company that operates within the entertainment industry. Its primary focus is on live entertainment, such as…

BMO Capital Assesses Corus Entertainment in Q1 Results


Trending News ☀️ BMO Capital has recently made a thorough assessment of Corus Entertainment ($TSX:CJR.B) in its Q1 results. Corus Entertainment is a Canadian media and broadcasting company that owns a variety of television and…

iQIYI Shares Drop 7% Pre-Market Following Stock Split Announcement


Trending News 🌥️ IQIYI ($NASDAQ:IQ): iQIYI, an online video streaming platform and production company based in Beijing, saw its shares drop 7% pre-market on Tuesday following an announcement of a stock split. The split, which…
EntertainmentIntrinsic Value

Disney Confirms Board of Directors is Best Suited for Business, Rejects Activist Investor Nelson Peltz


Trending News ☀️ Walt Disney Stock Fair Value – Walt Disney ($NYSE:DIS) Co. is a multinational mass media and entertainment conglomerate, one of the most iconic and influential companies in the world. In their latest…
EntertainmentMarket Price

Cineplex PT Tickets Now Available for Reduced Price of C$11.50!


Trending News 🌥️ Cineplex Inc ($TSX:CGX) is a leading Canadian entertainment company, providing services in the film and media industry. The company is the largest exhibitor of theatrical motion pictures in Canada and is listed…

Invest in Sinclair Broadcast Stock for a Promising Return on Investment


Trending News ☀️ Sinclair Broadcast ($NASDAQ:SBGI) Group, Inc., is a publicly-traded media company that owns and operates television stations throughout the United States. For investors looking for a promising return on investment, Sinclair Broadcast stock…

Live Nation Entertainment Issues $900M in Convertible Senior Notes Due 2029


Trending News ☀️ Live Nation Entertainment ($NYSE:LYV) is a global entertainment company that provides live entertainment experiences. It is a publicly traded company on the New York Stock Exchange (LYV). The company owns, operates, and/or…